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Thursday, January 30, 2014

Be Unique

By Mohnish Nair

In today’s competitive world
where price has become the deciding factor for driving sales and when
customer loyalty seems to be at an all time low, there also exists a breed of
business houses, brands and products that enjoy unbeatable customer fidelity and at
the same time dictate prices on their own terms.

What makes a Harley bike so
desirable? Why are you willing to pay 100 bucks for a cup of cappuccino at
Starbucks but would never pay anything above 25 at your local udipi hotel? Look
at Apple for instance, why are customers willing to stand in mile long queues
on cold winter nights just to grab hold of a mobile phone and still pay a
premium price that no other mobile company can even imagine to demand? The
answer lies in what most businesses fail to discover and implement in their
business, its all about being Unique!!

Creating
the Experience

The success of a business is
highly dependent on the core intention of the business. If it is only to make
profits, then it may just end up doing that, bring profits, However, if your
business and its delivery is designed around something beyond profits,
something worthwhile for humanity to get excited about, then you have found your calling. For example just
have a look at the Mission statement of
Starbucks. In reality it is just a coffee serving restaurant like millions of
other such cafes but what makes Starbucks unique and attractive is its
intention which is clearly reflected in its Mission statement - Our
mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood
at a time.

As clearly evident the intention is to contribute an experience
in the customer’s life not just through a cup of coffee but to serve it with an
electrifying ambiance, cheerful staff, and superior service thus making it
desirous. The experience helps you unwind, run away from the rush of your
maddening life to a secluded space of warmth, happiness and friendly banter. Starbucks
chairman and CEO Howard Schultz explained to Oprah Winfrey in 2007, when he was
serving as Chairman (not CEO), sales were plummeting and the stock was sinking.
“We had lost our way,” he said. “The pursuit of profit became our reason for
being and that’s not the reason that Starbucks is in business…we’re in the
business of exceeding the expectations of our customers.” He returned as the
CEO because of “love” and “passion”

Creating
loyalty

The note that strikes the loyalty
chord with customers is customization. Be it Starbucks or
Harley Davidson – The cruiser bike giant. What separates them from the crowd is
their ability to cater to individual tastes and preferences, which makes their
product highly desirable and unique. Harley Davidson is not a motorbike
company. It’s a cult! It evokes the untamed masculinity in you. It pushes you
to discover uncharted roads. It seduces you to ride towards freedom. It’s about
being wild and adventurous. Now will you pay a premium to have all of the above?
Yes sir! You will. This is the emotion that the brand inspires in its followers
and that is what makes them timelessly iconic.

Harley-Davidson was facing major problems,
which included slumping sales, forcing them to restructure. They changed the
production and management strategies and went on to continued success and growth.
The turn around started in 1981 when a group of 13 Harley-Davidson executives
led by Vaughn Beals bought the company. These new owners started the Harley
Owners Group (H.O.G.) in an attempt to open lines of communication with the
customers and bring them closer to the brand. This is known as an affinity
group and it involves spending time, attention and money on existing owners.
Every Harley buyer gets a free one-year membership and there are trips,
parties, and special merchandise. The emotion of brotherhood, fraternity,
machismo has lead to an enviable cult following worldwide. It’s all about
asking the customers what they would like to have and then delivering the goods
as per their personal liking. That’s customization.

Delivering
Excellence

It is
the obsession to deliver that which no one else can. The obsession to surpass
all customer expectations and to delight and surprise the customer. The
obsession to deliver excellence in a non compromising way is what drives the
success of any product or company. It is this obsession to be above mediocrity
and to give the customer a superior experience of using your product or dealing
with you that creates an iconic success story. Apple through the vision of
Steve jobs got all the above right and more.

Most of Apple’s products have been
recreations of existing products. Apple did not invent the MP3 player; Apple
reinvented it and made it better. Apple did not invent the smart phone; Apple
reinvented it and made it better. And Apple did not invent the tablet; Apple
reinvented it and made it better. It is evident thatApple
stays at least two years ahead of its competitors. While those competing with Apple are just getting
products to market that are competitive, Apple is already working on the
products at least two years ahead. Apple’s customer service and stores
represent the gold standard for selling and supporting tech gadgets. Its all
about delivering excellence.

To conclude as Howard Schultz of Starbucks puts it “What you do is different than what you’re passionate about.
Your product is not your story. Your story is how the product improves the
lives of your employees and your customers.”